Strict guidelines and Banking Challenges Stifle Cannabis Businesses
Cannabisbusiness owners are tasked with the challenge of overcoming strict guidelines that impact how they do business with banks, payment agencies, payroll service providers, and pay cards.
As your cannabis business grows, you must reduce the risks encountered by operating as a cash business and instead find a bank that supports the cannabis industry. Interestingly, only one in thirty banks in the United States will even consider accepting a cannabis business as a customer. However, with the popularity and more widespread acceptance that number is slowing inching upward.
The lack of any firm type of formal compliance program and the sheer volume of knowledge that is needed to adhere to compliance regulations makes it imperative that any successful cannabis business picks a skilled payroll and business company to handle their financial needs. At all times, there must be adherence to the regulations laid out by the Financial Crimes Enforcement Network (FinCEN), the Department of Treasury, and all other state regulatory bodies has become a crucial mandatory component of the industry.
The Importance of Transparency in Cannabis Payroll and HR
Cannabis businesses have to remain a step ahead of other industries with their financial services. They do not have the luxury of becoming lax. It is imperative that any marijuana business remain compliant and transparent with their payroll and all HR financials. When picking a cannabis payroll and HR company look for a company that carries out the following:
●Pays extreme due diligence to ensure complete compliance with FinCEN and AML/BSA.
●Willing to maintain all documentation on your cannabis business
●Have complete familiarity with IRC 280e for reporting all job costing and employee hours that will go towards COGS (cost of goods sold)
●Maintain documentation of SOPs along with employee training records
●Familiar with the legalities surrounding background checks on employees and financially interested parties
●Be prepared for onsite visits from a compliance consultant●Maintain proof of business insurance
●Organize all necessary documents, operational information, and ownership structure
●Track changing federal and state regulations that impact cannabis payroll processing so your company stays compliant.
●Handle the tax aspects